Amazon's Market Cap Falls Below $1 Trillion... Stock Price Plummets 42% This Year

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The market capitalization of Amazon, the world's largest e-commerce company, fell below $1 trillion on the 1st (local time). This is the first time since April 2020, when it was hit hard by the pandemic.

According to the Wall Street Journal (WSJ) and others, Amazon's market capitalization dropped to around $987 billion on that day. It is the first time since April 2020 that Amazon's market cap has fallen below $1 trillion based on closing prices. Previously, Amazon's market cap surged to as high as $1.88 trillion in July 2021, fueled by the tech stock rally that year.

On that day, Amazon's stock price closed at $96.79, down 5.52% from the previous session. This represents a sharp decline of 41.94% compared to the beginning of the year. Considering that the S&P 500 and Nasdaq indices have fallen by 19.09% and 30.39% respectively this year, Amazon's decline is particularly pronounced. It also exceeds the declines of other members of the $1 trillion market cap club such as Apple (-15.16%), Microsoft (-32.16%), and Google Alphabet (-37.54%).

This poor performance is largely due to the Federal Reserve's aggressive tightening this year, which has increased recession concerns and dampened consumer sentiment. Amazon held its large-scale discount event for paid members twice this year for the first time ever in July. While the industry interpreted this as an effort to clear inventory, some analyses suggest that sales volume actually decreased.

Earlier, on the 28th of last month, Amazon's market cap was also threatened when its stock price plunged more than 10% intraday after it released a weak earnings forecast ahead of the year-end shopping season.

This content was produced with the assistance of AI translation services.